Paytm Parent Forms Group Advisory Committee To Strengthen Compliance

One97 Communications Ltd., the parent company of Paytm, has formed a group advisory committee to work with the company's board to strengthen compliance and regulatory matters.

The three-member committee will be chaired by M. Damodaran, former Securities and Exchange Board of India chairman, an exchange filing said on Friday.

The other group members include MM Chitale, former president of the Institute of Chartered Accountants of India, and R Ramachandran, former chairman and managing director of Andhra Bank.

The advisory committee will work closely with the company's board and will induct additional members as necessary, it said.

NDTV Profit had earlier reported that Paytm Payments Bank Ltd. has floated a request for a proposal to external auditors. The bank has floated this RFP on a restricted basis to external auditors and hence, it is not available in the public domain.

Paytm Payments Bank's board member and independent director, Manju Agarwal, resigned with effect from Feb. 1.

On Jan. 31, RBI cracked down on the associate company of One97 Communications for "persistent non-compliance" and major "supervisory concerns."

In its orders, the regulator said that Paytm Payments Bank can't accept fresh deposits, top-ups or credit transactions in its accounts after Feb. 29.